fourth industrial revolution and trade unions in south

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i Fourth industrial revolution and trade unions in South African platinum mining industry Luxolo Mpafa A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Business Administration Johannesburg, 2018

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Page 1: Fourth industrial revolution and trade unions in South

i

Fourth industrial revolution and

trade unions in South African

platinum mining industry

Luxolo Mpafa

A research report submitted to the Faculty of Commerce, Law and

Management, University of the Witwatersrand, in partial fulfilment of the

requirements for the degree of Master of Business Administration

Johannesburg, 2018

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ABSTRACT

The fourth industrial revolution is unavoidable and its impact on jobs is taking

centre stage across the business sector and government discussions. The labour

movement in the country realises the threat of this revolution on jobs and

livelihood of the working class. The South African platinum mining industry is

amongst the industries that are directly affected by the Fourth Industrial

Revolution.

The study is aimed at investigating the impact of fourth industrial revolution on

trade unions’ future sustainability and existence. An in-depth interview method

was used as the main data collection method. The participants were identified

using a purposive voluntary sampling method. The sample was limited to the

platinum mining industry and it involved members of three dominant trade unions

namely; NUM, AMCU and UASA. The data collected was analysed based on

specific themes that were identified during the study.

The study findings indicated there is need for trade unions to focus on training

and development of their members in order to remain relevant and sustainable.

There is need for change of leadership qualities even though it could not conclude

on the proposed visionary leadership style. Trade unions need to be adaptive

organisations in order to survive the impact of Fourth Industrial Revolution.

There’s need for them to form partnerships with employers and focus on training

and development of their members.

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DECLARATION

I, Luxolo Mpafa, declare that this research report is my own work except as

indicated in the references and acknowledgements. It is submitted in partial

fulfilment of the requirements for the degree of Master of Business Administration

in the University of the Witwatersrand, Johannesburg. It has not been submitted

before for any degree or examination in this or any other university.

Luxolo Mpafa

Signed at ……Johannesburg…………………

On the …………22nd………….. day of ……October………… 2018

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ACKNOWLEDGEMENTS

Firstly, my gratitude goes to my supervisor, Linda Master for her undying

support throughout the research journey. Your words of encouragement,

patience and insightful comments made it possible for me to conclude this

research.

Many thanks to my family for their moral support during difficult times. Your

understanding when I was away made me work harder.

I am grateful to all the participants who agreed to be interviewed. Without you,

this wouldn’t have been possible.

Special gratitude goes to my comrades, Hanya and Mlu, who volunteered to

assist me with field work.

My sincere appreciation to all comrades who assisted financially when I had

to travel between Johannesburg and Rustenburg for interviews. Your

contributions are appreciated.

Lastly, I would like to thank God for giving me wisdom and strength to continue

when it seemed impossible. Thank you for your blessings.

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TABLE OF CONTENTS

ABSTRACT ..................................................................................... ii

DECLARATION .............................................................................. iii

ACKNOWLEDGEMENTS ............................................................... iv

LIST OF TABLES ......................................................................... viii

LIST OF FIGURES ......................................................................... ix

LIST OF ABBREVIATIONS ............................................................. x

CHAPTER 1. INTRODUCTION .................................................... 11

PURPOSE OF THE STUDY .................................................................. 11

CONTEXT OF THE STUDY ................................................................... 12

PROBLEM STATEMENT ...................................................................... 14 1.3.1 MAIN PROBLEM .................................................................................................... 14 1.3.2 SUB-PROBLEMS ................................................................................................... 14 1.3.3 OBJECTIVE OF THE STUDY .................................................................................... 16

SIGNIFICANCE OF THE STUDY ............................................................ 16

DELIMITATIONS OF THE STUDY........................................................... 17

DEFINITION OF TERMS ...................................................................... 18

ASSUMPTIONS ................................................................................. 18

CHAPTER 2. LITERATURE REVIEW ......................................... 19

INTRODUCTION ................................................................................ 19

BACKGROUND DISCUSSION. .............................................................. 19

FOURTH INDUSTRIAL REVOLUTION ..................................................... 20 2.3.1 TRAINING AND DEVELOPMENT OF WORKFORCE ...................................................... 24 2.3.2 PROPOSITION 1 .................................................................................................... 26

LEADERSHIP .................................................................................... 27 2.4.1 LEADERSHIP IN THE ERA OF TECHNOLOGY ............................................................. 28 2.4.2 PROPOSITION 2 .................................................................................................... 29

CONCLUSION OF LITERATURE REVIEW ............................................... 29 2.5.1 PROPOSITION 1: ................................................................................................... 29 2.5.2 PROPOSITION 2: ................................................................................................... 29

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CHAPTER 3. RESEARCH METHODOLOGY .............................. 30

RESEARCH METHODOLOGY ............................................................... 30

RESEARCH DESIGN .......................................................................... 31 3.2.1 POPULATION ........................................................................................................ 31 3.2.2 SAMPLE AND SAMPLING METHOD ........................................................................... 31

THE RESEARCH INSTRUMENT ............................................................ 33

PROCEDURE FOR DATA COLLECTION .................................................. 34

DATA ANALYSIS AND INTERPRETATION ............................................... 36

LIMITATIONS OF THE STUDY ............................................................... 36

VALIDITY AND RELIABILITY ................................................................. 37 3.7.1 EXTERNAL VALIDITY .............................................................................................. 37 3.7.2 INTERNAL VALIDITY ............................................................................................... 38 3.7.3 RELIABILITY ......................................................................................................... 38

DEMOGRAPHIC PROFILE OF RESPONDENTS ........................................ 39

CHAPTER 4. PRESENTATION OF RESULTS ............................ 43

INTRODUCTION ................................................................................ 43

RESULTS PERTAINING TO PROPOSITION 1 ........................................... 43

RESULTS PERTAINING TO PROPOSITION 2 .......................................... 47

SUMMARY OF THE RESULTS .............................................................. 51

CHAPTER 5. DISCUSSION OF THE RESULTS ......................... 52

INTRODUCTION ................................................................................ 52

DISCUSSION PERTAINING TO PROPOSITION 1 ...................................... 52 5.2.1 TECHNOLOGICAL CHANGES IN THE WORKPLACE ..................................................... 52 5.2.2 EMPLOYER’S ROLE IN ENFORCING TECHNOLOGICAL CHANGES................................. 53 5.2.3 NOTICEABLE BENEFITS OF TECHNOLOGICAL CHANGES ............................................ 54 5.2.4 CONCLUSION REGARDING PROPOSITION 1 ............................................................. 55

DISCUSSION PERTAINING TO PROPOSITION 2 ...................................... 55 5.3.1 TRADE UNIONS’ VIEW ON 4IR ................................................................................ 55 5.3.2 FUTURE OF TRADE UNIONS ................................................................................... 55 5.3.3 FUTURE LEVELS OF UNIONISM ............................................................................... 56 5.3.4 CONCLUSION REGARDING PROPOSITION 2 ............................................................. 57

CONCLUSION ................................................................................... 57

CHAPTER 6. CONCLUSIONS & RECOMMENDATIONS ........... 58

INTRODUCTION ................................................................................ 58

CONCLUSIONS OF THE STUDY ........................................................... 58

RECOMMENDATIONS ........................................................................ 60

SUGGESTIONS FOR FURTHER RESEARCH ........................................... 60

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REFERENCES .............................................................................. 61

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LIST OF TABLES

Table 1: Profile of participants ………………………………………………………33

Table 2: Sections of research questionnaire ………………………………………33

Table 3: Sample representativeness ………………………………………………35

Table 4: Theme for first proposition ……………………………….……………….44

Table 5: Theme for second proposition ……………………….…………………..48

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LIST OF FIGURES

Figure 1: History of industrial revolutions ………………………………………….21

Figure 2: Comparison of current and future skills ………………………………..26

Figure 3: Age of participants ………………………………………………………...39

Figure 4: Gender of participants …………………………………………………….39

Figure 5: Race of participants ……………………………………………………….40

Figure 6: Nationality of participants ………………………………………………..40

Figure 7: Academic qualifications of participants …………………………………41

Figure 8: Employer representativeness ……………………………………………41

Figure 9: Trade union representative ……………………………………………...42

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LIST OF ABBREVIATIONS

AMCU: Association of Mining and Construction Union

AMU: African Mine Workers Union

BU: Business Unionism

CEO: Chief Executive Officer

CNC: Computerized Numerical Control

GDP: Gross Domestic Products

ICs: Industrial Councils

ICA: Industrial Conciliation Act

NEDLAC: National Economic Development and Labour Council

NOB: National Office Bearer

NUM: National Union of Mineworkers

PwC: PricewaterhouseCoopers

RU: Radical Unionism

ROB: Regional Office Bearer

RAIR: Robotics, Artificial Intelligence and Automation

SMU: Social Movement Unionism

TU: Trade Union

UASA: United Association of South Africa

1IR: First Industrial Revolution

4IR: Fourth Industrial Revolution

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CHAPTER 1. INTRODUCTION

Purpose of the study

The purpose of this research is to determine the impact of Fourth Industrial

Revolution (4IR) on trade union sustainability in the South African platinum mining

industry. The South African platinum mining industry comprises, mostly, of low

skilled employees. These employees are underprepared for anticipated

technological changes that could result in them being declared redundant. As a

results of the emergence of 4IR, more people are likely to lose their jobs to robots,

technology, artificial intelligence, etc. hence the likelihood of trade unions fighting

for members is becoming more urgent. Hodgson G. M (2016) cited the possibility

of economic and social-inclusion conflicts between skilled and unskilled

workforce. This imminent scenario poses serious challenges to the existence and

sustainability of trade unions in the platinum mining industry.

The 4IR will lead to the mechanisation of most mining operations (Hattingh et al,

2010; Ivanov, 2017). As a consequence, only skilled employees will be absorbed

by the system. Working conditions and environments, which trade unions used

as a tool for recruitment, are no longer going to matter to majority of potential

trade union members.

The continued resistance, by trade unions, to technological changes in South

Africa’s platinum mining industry is as a result of trade unions’ failure to

conceptualise innovative technologies as challenges that require research,

education and training. To remain relevant, trade unions will have to advocate for

training of their members in anticipation of the impact of the 4IR (Hlatshwayo &

Buhlungu, 2017). For this to be achieved, the study argues that trade unions need

leaders who will embrace technological changes and derive strategies to respond

to the imminent 4IR in order to remain in existence and be sustainable.

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Context of the study

The Union of South Africa was formed in 1910, it formally exclude black workers

from any political expression and racialized the structure of the labour market.

Bhorat et al (2014) realises the impact of the 1911 Mines and Works Act, which

reserved skilled mining jobs for whites only, on the current workforce in the mining

industry. Due to this setup, the mining industry continues to experience a huge

skills gap amongst its workforce. Hlatshwayo M (2017) noted the need to

restructure skills and create more skilled workforce in order to deal with

technological changes. Between 2013 and 2017, about ten thousand (10 000)

mine employees were granted apprenticeship as means of skills development

(Chamber of Mines’ report, 2017)

Trade unionism in the South African mining industry started during the 20th

century. The core foundation of collective bargaining legislation in South Africa

was the Industrial Conciliation Act (ICA) of 1924, which provided for the voluntary

establishment of permanent collective bargaining institutions, namely Industrial

Councils (ICs), by employers’ organizations and registered non-African trade

unions (Godfrey et al, 2010). The formation of African Mine Workers Union

(AMWU) in 1941 was a turning point in the South African labour market. Black

mine workers discovered a need to organise themselves in order to fight for

improved working conditions and defend their rights in the workplace.

An increase in global competitiveness has led to investment in technologies and

process improvements to drive productivity. This has led to changes in the nature

of the trade unions. Industrial restructuring, growth in flexibility, changes in

workplace practices and an increase in job insecurity have a huge effect on trade

unions’ ability to organise workers

According to Hyman (2001), some trade unions focused on different “classes”

hence adopting radical unionism (RU), some focused on “markets” hence

adopting business unionism (BU) and others focused on the “society” hence

adopting social-movement unionism (SMU).

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The technological changes will have a fundamental influence on the working

environment of the future (Lars et al, 2015)

The South African mining sector contributes about seven percent (7%) towards

the country’s GDP (Stats SA, 2017). It grew for about 12.8% in the first quarter of

the year 2017 (Stats SA, 2017). According to the Chamber of Mines’ report (2017)

the platinum mining industry is responsible for about 172 444 direct and indirect

jobs in the country. It is one of the industries that are bound to be impacted by

the fourth industrial revolution as the mines intend to mechanise in pursuit of low

production costs and safe operating environments.

Hattingh et al (2010) notes that in South Africa, many platinum, chrome and

manganese mines are using trackless mechanized mining equipment of

continually increasing engineering sophistication. Mine mechanisation is the

important strategy in design and operation of modern mines. Its main objectives

is to improve safety in the mines and to reduce mining costs. Technology remains

a decisive element in determining the size and character of the workforce. For

example, in the case of platinum mining industry, the workforce was reduced by

close to 26 000 workers between years 2012 and 2016 (Chamber of Mines’

report, 2017).

The replacement of manually powered hammer-and-chisel drilling with rotary

percussive rock drills (Hattingh et al, 2010) changed the character of the

workforce from predominantly “blue-collar and unskilled” to one that is dominated

by semi-skilled and skilled workers operating in a highly automated production

environment.

As a consequence, trade unions have had to focus on recruiting high-earning and

skilled workforce that is not easily convinced to join trade unions. The Chamber

of Mines report (2016) indicates an average 16, 4% increase in employee

earnings between 2005 and 2016.

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Problem statement

1.3.1 Main problem

The impact of the fourth industrial revolution on job losses in platinum mining is

of concern to trade unions. Job loses lead to reduced workforce and subsequent

membership loss for trade unions. Ratna and Kaur (2012) noted that a more

unionised workplace has potential for increase in productivity. Job losses may

result in uncertainties which might have negative impact on productivity and

profitability of the platinum mining industry.

Daud and Tumin (2013) believe that during periods of uncertainty, organisations

should adopt “participative management style” to improve employee satisfaction

and productivity. Employees join trade unions to satisfy their needs (Daud &

Tumin, 2013).

The emergence of technological changes poses serious challenge to the

existence and sustainability of trade unions. The trade union members need to

change their attitudes and approaches towards their employers through

application of scientific management method (Evangelopoulos, 2011).

In the midst of ever changing working environments, the scientific management

theory remains relevant for the organisation’s future sustainability and existence

(Sarker & Khan, 2013).

To remain strong and relevant, trade unions will not only have to defend the

interests of workers, but also respond comprehensively to technological changes.

1.3.2 Sub-problems

Sub-problem 1: The first sub-problem concerns providing skills development

and training, particularly with regards to finding ways to invest in technological

skills development.

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Training of employees for the sake of compliance to mining charter is not the

solution. Workforce need to be trained on skills that will guarantee future

employment as a result of fourth industrial revolution. This sentiment was also

emphasised by Hlatshwayo (2017), who argued that trade unions’ failure to

acknowledge technological changes as a subject that requires research,

education and organisational capacities is posing serious challenges to their

future existence and sustainability.

Sub-problem 2: The second sub-problem is finding ways to source and develop

visionary leadership from trade union leaders. Trade union leaders can no longer

be ignorant of the impact of the imminent fourth industrial revolution. They need

to derive new mechanisms of attracting skilled workers into trade unions.

Sub-problem 3: The third sub-problem concerns the union’s ability to deliver

quality services to members. The platinum mining industry has experience a

decline in total membership of trade unions.

This decline is largely attributed to poor service delivered to members by their

trade unions of choice. Uys (2011) revealed that existence of trade unions in the

future is dependent on the quality of their service to members. In agreeing, Ratna

and Kaur (2012) also noted that membership service contributes to the

satisfaction of trade union members.

Sub-problem 4: The fourth sub-problem is the employer’s attitude towards

technological innovations and improvement. In the mining industry, technological

changes improve working conditions (Hattingh et al, 2010) and it should upskill

the workforce. The employer’s willingness to upskill the workforce with regard to

operating the new technologies will be useful for the existence of trade unions.

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1.3.3 Objective of the study

Based on the problems identified, the study’s main objectives will be to:

1) Evaluate whether trade union leaders understand the concept of 4th

Industrial Revolution.

2) Assess whether trade unions are aware of the impact of 4th Industrial

Revolution on their existence

3) Determine the state of readiness of trade unions for the 4th Industrial

Revolution

4) Assess structural changes trade unions will make to deal with 4th Industrial

Revolution.

5) Assess whether trade unions are able to use the 4th industrial revolution to

improve their service to members

6) Assess whether employers make use of 4th industrial revolution to

minimise influence of trade unions

Significance of the study

The theory suggests that the fourth industrial revolution is imminent and is going

to change the way businesses are conducted. The platinum mining industry is

highly unionised and has experienced disagreements between trade union

leaders and business managers.

These disagreements have resulted in delays on implementation of significant

projects. Willis, Dixon, Cox, and Pooley (2004), stated that when mines introduce

new technology they need to consult with their employees otherwise the new

technology is bound to fail without internal acceptance. During the change

management process communication is vital and most employees communicate

freely through trade unions (Odhony & Omolo, 2014).

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Delays in implementation are mostly caused by lack of understanding and

insufficient information about the new technology being introduced. Trade unions

continue to fight for their members through advocating for improved working

conditions and salaries. They have not yet conceptualise the impact of technology

on their future existence. This needs to change as changes happen at a faster

pace and require leaders who can simultaneously think and decide on future

plans (Pryor et al, 2008)

The study will provide guidance to the impact the fourth industrial revolution will

have on trade unions. Understanding this impact will assist trade unions to re-

evaluate their role in the industry and determine strategies that might assist them

to defeat challenges posed by 4IR. This study will benefit both trade unions and

mining companies to identify calibre of leaders that will be needed in the future.

Yordsala, Tesaputa and Sri-Ampai (2014), concluded that future organisation will

need leaders with vision and who possess high levels of flexibility. They further

noted that future leaders should show readiness for technological changes. With

visionary leaders at the helm of both trade unions and mining companies,

disagreements could easily be resolved. This will lead to speedy implementation

of innovative technologies for maximum benefit of all stakeholders.

Delimitations of the study

The study is about the impact of fourth industrial revolution on trade unions.

Knowing that the 4IR impacts trade unions across all sectors, the study is limited

to the platinum mining industry in South Africa. Looking at the geographical

spread of the platinum belt, the study only focuses on the Rustenburg area in

North West province. Participants are drawn from three platinum mining

companies namely; Anglo platinum, Sibanye Stillwater and Lonmin Platinum.

Leaders and members of NUM, AMCU and UASA which are the big three

recognised trade unions voluntarily participated in the study.

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Definition of terms

1. AMCU: A splinter trade union from NUM. it is currently a majority union in

the platinum belt.

2. GDP: It is the monetary value of all the finished goods and services produced

within a country's borders in a specific time period, usually annually

3. Fourth Industrial Revolution: Schwab, K (2015) described the fourth

industrial revolution as the current and developing environment in which

disruptive technologies and trends such as the Internet of Things (IoT),

robotics, virtual reality (VR) and artificial intelligence (AI) are changing the

way we live and work.

4. IndustriAll: A global trade union of manufacturing and mining workers

5. Marikana Massacre: The year 2012 killing of 34 striking mine workers by

South African police in Marikana.

6. Mechanisation: the process of automating work in the mining industry

7. NUM: A once dominant trade union in the South African mining industry. It

lost its majority status to AMCU in 2012

8. RAIA: Robotics, Artificial Intelligence and Automation. The technological

changes that are taking place.

9. Shop steward: An employee who is a trade union member responsible for

representing fellow employees in a workplace

10. UASA: The third biggest trade union in the platinum belt that mostly

represents employees in the supervisory bargaining category.

Assumptions

The study is based on trade unions’ view on the impact of 4IR. It is assumed that

all participants will respond based on personal experiences rather than

organisational views. This will ensure broader perspective on the concept under

research. All identified participants are assumed to be knowledgeable about the

concept under research. This will ensure credible and reliable outcomes. All

participants participated voluntarily without any perceived ideas about either the

researcher or the desired outcome of the research.

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CHAPTER 2. LITERATURE REVIEW

Introduction

The literature review will cover the background of industrial revolution, the fourth

industrial revolution and leadership. The background gives a brief explanation of

industrial revolutions starting from the 1IR to the 4IR. The 4IR is discussed into

details in the context of mining industry. The discussion leads to identification of

key focus areas which are training and development. The leadership component

gives two different perspectives and is linked to the current leadership styles of

trade union leaders. The discussion concludes by identifying kind of leadership

that might be needed in the era of 4IR.

Background discussion.

In the past two hundred and fifty years since the dawn of the industrial revolution,

the world has undergone a tremendous transformation (Lars et al, 2015). From

the first industrial revolution up to the third industrial revolution more jobs were

created. According to Schwab (2016), the first industrial revolution used water

and steam power to mechanize production. The second industrial revolution used

electric power to create mass production (Schwab, 2016). The third industrial

revolution used electronics and information technology to automate production

(Schwab, 2016).

Schwab (2016) noted that the speed of current breakthroughs has no historical

precedent. When compared with previous industrial revolutions, the fourth

industrial revolution is evolving at an exponential rather than a linear pace.

Moreover, it is disrupting almost every industry in every country. And the breadth

and depth of these changes herald the transformation of entire systems of

production, management, and governance.

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Fourth industrial revolution

The Fourth Industrial Revolution is upon us. This revolution was presided by three

other revolutions (Schwab, 2016). The first industrial revolution (1IR) started with

the mechanisation of manufacturing. Bloem et al (2014) argues that the first

industrial revolution occurred as a result of mechanical production on the basis

of water and steam. This argument is supported by Lars et al (2015) who argue

that it occurred as a result of changes in power sources. The emergence of the

1IR led to creation of specialised job (Stearns, 2012). This view was supported

by Lars et al (2015), who argued that the 1IR led to a change of the required skills

and knowledge needed by the workforce. The 1IR led to sustained economic

growth and opportunities for employment, thus influencing social and cultural

aspects of life (Lars et al, 2015).

McDougall W (2014), described second industrial revolution as the introduction

of division of labour and mass production with the help of electric energy. Bloem

et al (2014), described it as the introduction of conveyor belts and mass

production. It is also about the use of electric power to create mass production

(Schwab, 2016).

The third industrial revolution entails use of electronics and information

technology to automate production. Both Bloem et al (2014) and Schwab (2016)

are in agreement with the description. The internet and interconnection of work

positions has become more complex and requires more accountability, flexibility,

reachability, self-organisation and qualifications (Ahlers, 2016).

The fourth industrial revolution is defined as the fusion of technologies that is

blurring the lines between the physical, digital, and biological spheres (Schwab,

2016). Figure 1 below indicates the history of industrial revolution.

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Figure 1: The history of industrial revolution

Source: Premium Times 2016

Lars et al (2015) noted, in relation to manufacturing industry in German, that

workers utilize more computerized machines and other forms of industrial

automation. The fourth industrial revolution is transforming the global economic

landscape.

Following the progress in robotics, artificial intelligence and automation

technologies (RAIA), companies from various economic sectors adopt RAIA to

decrease costs, generate additional revenues, provide consistent product quality,

streamline operations, expand production/service capacity and improve

company’s competitiveness (Ivanov, 2017).

The fusion of technology across physical, digital and biological spheres is a

characteristics of exponential changes in technology (Schwab, 2016). According

to Schwab (2016) this fusion leads to profound shifts across all industries, marked

by the emergence of new business models which affects every aspect of society.

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Lars et al (2015) notes the introduction of cyber physical systems as one of the

revolutionary changes in the fourth industrial revolution. The systems allow

machines to communicate with each other more efficiently.

This has a potential to destroy more jobs. Hodgson G. M (2016) alluded that

innovative technology is changing the character of work and the patterns of

employment across industries. The reason the fourth industrial revolution will not

follow the pattern of previous revolutions is because technology is changing at a

much faster rate than people do. Technology tends to drive costs down while

people drive costs up making it difficult for organisations to be profitable.

Naude, W (2017) emphasises that in the era of fourth industrial revolution,

technologies normally complement higher-skilled workers while lower-skilled

workers are replaced. This is different from earlier industrial revolutions which

saw technology replacing skilled workers and compliment low skilled workers

(Naude, 2017). According to Schwab (2016), about 7.1 million jobs, worldwide,

could be lost through redundancy, automation or disintermediation. The massive

introduction of RAIA will lead to profound economic, social and political changes,

the most obvious of which is that the majority of currently existing jobs will

disappear (Ivanov, 2017). This is further emphasised by Naude (2017), stating

that up to 66 per cent of all jobs in developing countries are at risk.

Technological changes and advancements influence the strength and the impact

of trade union together with their ability to organise. Technology is changing the

manner businesses are conducted nowadays (Ramlall, 2003). It leads to

business downsizing and a shift in industrial employment away from large

companies (Jose, 1999). Venter (2003) argued that technological improvements

have impact on employment relations as well as design, location and nature of

work itself. Ahlers (2016) argued that 4IR increase job security concerns but also

promotes new, flexible forms of employment.

The mining industry is one of the biggest contributors to South Africa’s gross

domestic products (GDP). It contributes about seven percent (7%) towards GDP

(StatsSA, 2017).

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Technology, mine mechanisation, has been used in the industry for a long time.

Its main objective is to improve safety and working conditions (Hattingh et al,

2010). Its potential to reduce jobs has led to conflicts between mine owners and

labour movements. Akhtar and Moore (2016) noted that trade unions recognise

that technological improvements do not foster conflicts in workplaces but

engagement for implementation normally cause conflicts.

Willis et al (2004) noted that technological changes in the mining industry can be

utilised to improve investment in education and training of workers. This would

lead to positive socio-economic benefits.

Willis et al (2004) further argues that regardless of job losses in the mining

industry due to mechanisation, the 4IR has potential to increase employment in

secondary industries which will need to meet the higher technology demand of

the mining industry. A highly technologized mining industry has potential to create

more employment opportunities in other secondary industries such as

manufacturing, services etc.

Use of technology in mining industry is faced with challenges such as poor

implementation (Willis et al, 2004) and need for training and development

(Hattingh et al, 2010). Hattingh et al (2010) suggests that advanced planning is

required to ensure that people with the appropriate skills are recruited and trained

for mechanization projects.

For years, production in South Africa’s platinum mines has rested on the

muscular shoulders of men risking life and limb to drill into the rock face with

jackhammers. Stoddard (2014) noted that labour upheaval and a political push,

to make the mines safer and to transform the low-wage workforce, have set in

motion a drive to mechanize mines. The 2014 platinum belt strike by AMCU

members dictated the employers push towards mechanization. Researchers from

most universities agree that mechanization will have negative impact on trade

union’s bargaining power. Hlatshwayo (2017), noted that Trade unions

understand that mechanization can undermine their collective bargaining power.

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2.3.1 Training and development of workforce

Training and Development is defined as the ability of acquiring skills, knowledge

and understanding with the aim of improving performance at individual and

organisational levels (Tahir N et al 2014).

With the eminence of the fourth industrial revolution, training and development of

the workforce is crucial. Schwab, K (2016) suggested that there is a need to

shape a future that works for all of us by putting people first and empowering

them.

The primary purpose of trade union leader is to protect jobs and fight against

exploitation and victimisation of the workplace. Hlatshwayo, M (2017) notes that

trade union leaders view technological innovations as preserve of management

while their duty is to fight for better wages and improved working conditions.

The result of not engaging with technology is that unions are “caught on the back

foot” when new technology is introduced (Hlatshwayo, 2014). Skilling the current

workforce for future employability could be the solution for employers and trade

unions. Tahir N et al (2014) also noted that training and development can assist

in improving the moral of the workforce and assist employees to resonate with

the goals of the employer.

Report conducted by Deloitte in 2016 discovered that skills play a major role in

determining competitiveness and most organisation were concerned about the

unavailability of key skills on their performance (Deloitte, 2016). According to the

report by the chamber of mines (2017), the South African mining industry invested

about R5 billion in skills development.

Bloom and van Reenen (2010) related technology application to management

practices and skills. They argued that skilled managers are more likely to

implement appropriate technologies and promote effective innovations in their

organisations (Bloom & van Reenen, 2010).

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The South African mining industry supported about 18,000 tertiary education

learners during period 2011 to 2015 (chamber of mines’ report, 2017) and more

than 10,000 apprenticeships during the period 2011 to 2015. This investment

could be beneficial for the workforce in mitigating the impact of technological

innovations in the industry.

It is anticipated that by 2020, the fourth industrial revolution would have

introduced advanced robotics and autonomous transport, artificial intelligence

and machine learning, advanced materials, biotechnology and genomics, which

will change today’s work force (Gray 2016).

On evaluating future skills requirements, Gray (2016) discovered that about 35%

of the skills that are considered important on the workforce today will no longer

be needed. A survey done by the World Economic Forum’s Global Agenda

Council on the Future of Software and Society indicates that people expect

artificial intelligence machines to be part of a company’s board of directors by

2026 (Gray, 2016). Figure 2 below compares the present skills with future skills

in terms of importance.

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2.3.2 Proposition 1

For the trade unions to survive the impact of the fourth industrial revolution, they

will require massive investment on training and development of the workforce.

Trade unions with the capacity to conduct research on automation are able to

mitigate the negative effects of technological changes on jobs and workers

(Hlatshwayo, 2014).

Figure 2: Comparison of current skills with future skills

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Leadership

The phenomenon of leadership is widely researched, more especially in the field

of management and organizational development. Adlam and Villiers (2003) noted

leadership quality, ability, effectiveness and style as most researched aspects of

leadership. In defining leadership, many scholars have defined leadership based

on two different perspectives namely traditional and contemporary perspectives.

The traditional perspective views leadership as mere formulation of goals and

objectives, and ensuring their efficient accomplishment. According to the

traditional perspective, leaders get cooperation of their followers through

exercising power (Anderson, Ford & Hamilton, 1998).

In agreeing with Anderson et al (1998), other scholars argued that leadership is

about interpersonal influence that get individuals to do what the leader wants to

be done (Schermerhorn, Hunt & Osborn 2000). From this perspective it can be

argued that leadership is about leaders getting what they want without

considering the inputs of the followers. The build-up to Marikana massacre is a

perfect example of this kind of leadership within trade union movements.

The contemporary definition of leadership argues that leadership is the ability of

a leader to inspire confidence and support, motivate followers and managing

change (Dubrin, 1998). This sentiment was also shared by Sergiovanni (1999),

who perceived leadership as a personal thing comprising one’s heart, head and

hand. The heart component of leadership comprises of beliefs, values and vision

(Sergiovanni, 1999). To explain the head component, Sergiovanni (2007) argued

that it consists of individual leader’s ability to utilize accumulated experience in

dealing with present challenges. The leader’s ability to decide and act is part of

the head component of leadership (Sergiovanni, 2007).

Based on theory, one can define leadership as a process of utilizing the three

leadership components – heart, head and hand, to decide and act when dealing

with present challenges. Leadership definition in both the traditional and

contemporary perspective seems to be having some similar characteristics.

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For example, both perspectives noted that leadership does not occur in isolation.

Rather, it occurs when two or more people are interacting (Anderson et al, 1998)

and the leader seeks to influence the behavior of other people (Dubrin, 1998;

Sergiovanni, 2007). However, to a large extent, the traditional perspective of

leadership is based on exercising power over followers to maintain the status quo

(Anderson, Ford & Hamilton, 1998), while the contemporary perspective is based

on continuous improvement and power sharing with the followers (Sergiovanni,

2007). The traditional perspective of leadership is based on downward exercise

of power and authority while the contemporary perspective seeks to develop

respect and concern for the followers and see them as a powerful source of

knowledge, creativity and energy for improving the organization.

2.4.1 Leadership in the era of technology

The 4IR has brought significant changes in the manner in which organisations

are run. Today’s leaders have to constantly monitor and examine their

organisations’ strategies and visions. Tellis (2014) noted that most organisation

fail to succeed due to lack of visionary leaders. Most organisations succumb to

technological changes due to leader’s unwillingness to execute their visions

(Tellis, 2014).

Yordsala, Tesaputa and Sri-Ampai (2014) also argued that organisations,

nowadays, require leaders with vision and who possess high levels of flexibility.

The trade unions opposition to mechanisation of mines is a clear demonstration

that trade union leaders are not so flexible towards changes in the industry.

Yordsala et al (2014) further argued that leaders should show readiness for

technological changes. Most mining companies have had challenges with

implementing innovative changes due to trade unions’ reluctance to accept such

changes. This is a clear demonstration of leaders who are not ready for

technological changes. Germain V (2016) noted that today’s leaders need to lead

with purpose and vision. He further argued that for organisations to succeed in

the 4IR, they need leaders who are authentic, transparent and able to build trust

(Germain, 2016).

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2.4.2 Proposition 2

The fourth industrial revolution poses serious challenge to the future existence of

trade unions. For trade unions to exist in future, they need visionary leaders at

their helm.

Conclusion of Literature Review

The fourth industrial revolution is unavoidable and now upon us. It is different

from the previous revolutions. The changes will happen at a faster pace across

all industries. The platinum mining industry will be highly mechanised. This will

lead to reduction of jobs and acquisition of highly qualified employees. This

scenario will change the labour relation in the workplace. Improved working

conditions and better salaries will no longer be sufficient enough for employees

to join trade unions. The new era of mechanised mining will require skilled

employees. Training and development will play a major role in recruiting and/or

retaining members for trade unions. Trade unions will need leaders who are

flexible, inspirational and people-oriented. The top-down approach will no longer

be sustainable. Leaders will have to be more consultative.

2.5.1 Proposition 1:

For the trade unions to survive the impact of the fourth industrial revolution, they

will require massive investment on training and development of the workforce.

2.5.2 Proposition 2:

The fourth industrial revolution poses serious challenge to the future existence of

trade unions. For trade unions to exist in future, they need visionary leaders at

their helm

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CHAPTER 3. RESEARCH METHODOLOGY

This section describes the methodology used in the study. It takes into

consideration the research design, population, the sample and sampling method,

research instrument, data collection, data analysis and interpretation, study

limitations, validity and reliability and demographics of participants. The data was

collected through face-to-face interviews and surveys. The research data was

collected over a period of three months. The study involved participation of trade

unions and mining companies within the South African platinum mining sector.

Research methodology

This study adopted a qualitative research approach with the aim of gaining in-

depth knowledge and understanding about trade unions’ view of how 4IR will

impact on them. This approach was chosen based on Reason and Rowan (2004)

who concluded that qualitative research approach is used to connect meanings

to participants’ views and experiences. This narrative was also argued by

Trochim and Donnelly (2007) who stated that qualitative research method

enables the researcher to acquire in-depth and clear understanding about the

subject matter. The qualitative research paradigm requires deep understanding

of the concept (Antwi &Hamza, 2015) and knowledge is acquired through concept

interpretation (Rahi, 2017).

The qualitative research method allowed participants to freely express their

views, about the impact of 4IR on trade unions, without being channelled. The

semi-structured questions allowed the researcher to record, analyse and interpret

perceived participants’ views of the study. This approach was necessary because

it enabled the researcher to acquire in-depth knowledge and responses of trade

union leaders about the phenomena of 4IR.

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Research Design

The impact of 4IR on trade unions in South Africa is a subject that is under-

researched hence a qualitative research method was utilised in the study. This

study employed semi-structure interviews as the means of collecting data.

This research method is utilised when there is need for clear and deep

understanding of the subject being studied (Trochim & Donnelly, 2007).

3.2.1 Population

The study specifically focus on the South African platinum mining industry. More

particularly at three companies, Sibanye Stillwater, Lonmin and Anglo Platinum.

All these companies have adopted mechanisation strategy to improve safety,

productivity and operational efficiency. There’s high levels of unionisms at all

these three companies and that was helpful for the fulfilment of research

objectives.

To gather information, interviews were conducted with trade union leaders from

three dominant trade unions in platinum mining industry namely AMCU, NUM and

UASA. At least, fifteen (15) in-depth interviews were conducted with trade union

leaders and mine managers. To increase sample size and acquire more

information, employer representatives and trade union members were allowed to

participate in the study through survey. A minimum of seventy (70) employees

participated in the questionnaire survey.

3.2.2 Sample and sampling method

For the purposes of gathering relevant information from the participants, all

participants had to have some understanding of the concept of the Fourth

Industrial Revolution. To ensure correct selection of participants, a purposive

voluntary sampling method was used. This method assisted in ensuring that

participants are knowledgeable about the concept of 4IR and trade unions.

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Neuman (2000) argued that this sampling method is significant for a researcher

when selecting specialised participants that are difficult to reach.

According to Strydom (2008), when using this method, population characteristics

form the basis of sample selection. Uys (2011) believes that purposive voluntary

sampling is not for statistical representative but for selection of participants.

The sample group consisted of trade union leaders at various levels, trade union

members and mining company officials. All participants passed the selection

criteria listed below:

The participant had to be an official of a company or a member and/or

leader of a registered trade union.

The participant had to be willing to participate in the study

The participant had to be willing to be interviewed while being recorded.

During interviews, the researcher was referred to other potential participant by

some of the participants. The identified potential participants agreed to participate

in the research and were also interviewed. This sampling method is called snow-

ball sampling. Neuman (2000) described snow-ball sampling as a technique that

occurs as a results of referral by a participant to other potential participants in a

network circle.

Using both sampling methods ensured that data was saturated hence the

researcher could arrive at conclusion. The participants’ profile is shown in the

table below.

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Table 1: Profile of participants

The research instrument

The study was conducted by using a semi-structured interview questionnaire.

The questionnaire was divided into three (3) sections and each section had a

specific issue to address in the research.

Table 2: Sections of research instrument

SECTION SPECIFIC ISSUE PURPOSE OF ISSUE WHO MUST PARTICIPATE

1 Demographics To determine the demographics of the participants

All

2 Occupational Information To determine the experience of the participants

All

3 Affiliation Information To evaluate the relevance of the study to the participants

All

Description of respondent Type of respondent Total number interviewed

National Office Bearers Trade union leaders 2

Regional leaders Trade union leaders 5

Union officials Trade union employees 4

Mine managers/ Mining Company officials 4

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Procedure for data collection

The study used in-depth interview and surveys as the methods of collecting data.

The in-depth interview was the primary method of collecting data using semi-

structured interview questionnaire. The surveys were conducted by two field

workers who volunteered their services to the researcher. Initially, the researcher

had targeted to conduct at least sixty (60) face-to-face interviews. This proved to

be impossible as most targeted participants were either not willing to participate

or not available at agreed times. Eventually, a total of fifteen (15) face-to-face

interviews were conducted with trade union leaders and mine bosses. The main

purpose of the interviews was to evaluate the impact of 4IR on trade unions and

their state of readiness. The in-depth interviews were conducted in total of seven

(07) sessions. The first two sessions were in the month of June 2018 while the

remainder were in the month of July 2018.

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Table 3: Sample representativeness

Participant No. Participant Description Interview Date Interview Venue

Participant 1 NUM National leader 19/06/2018 Birchwood Hotel, JHB

Participant 2 NUM National leader 19/06/2018 Birchwood Hotel, JHB

Participant 3 NUM Regional leader 20/06/2018 Birchwood Hotel, JHB

Participant 4 NUM Regional leader 20/06/2018 Birchwood Hotel, JHB

Participant 5 NUM Regional leader 20/06/2018 Birchwood Hotel, JHB

Participant 6 AMCU regional leader 18/07/2018 Recreation Club, Rustenburg

Participant 7 AMCU Regional leader 18/07/2018 Recreation Club, Rustenburg

Participant 8 AMCU Official 20/07/2018 CCMA Office, Rustenburg

Participant 9 AMCU shop steward 20/07/2018 Waterfall Mall, Rustenburg

Participant 10 Mine Manager 24/07/2018 Recreation Club, Rustenburg

Participant 11 UASA Official 24/07/2018 Stay Easy Hotel, Rustenburg

Participant 12 UASA Official 24/07/2018 Stay Easy Hotel, Rustenburg

Participant 13 Mine Official 27/07/2018 Waterfall Mall, Rustenburg

Participant 14 Mine Official 30/07/2018 Golf Club, Mooinooi

Participant 15 Mine Manager 30/07/2018 Golf Club, Mooinooi

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Data analysis and interpretation

Data analysis entails giving order, structure and meaning to collected data (Uys,

2011). The researcher collected qualitative data from three different trade unions

and mining company representatives. All the data collected through interviews

had to be transcribed before it could be analysed. King and Horrocks (2010),

argued that data transcription is a necessary step before commencement of

analysis.

After data was transcribed, it was then coded to identify specific themes for

analysis. Saldana (2009) as cited in Uys (2011) describe coding technique as a

process of intensively reading transcript and identifying themes that relate to the

research question. To analyse data, all identified themes were aligned to the

responses of participants. The analysis of data hugely depended on the

transcripts and notes that were taken during interviews. The research was mostly

conducted in English except for two occasions where participants preferred to

express themselves in SeTswana.

Limitations of the study

The study identified some limitations regarding the data collection method used.

The identified limitations are accepted and have no potential to compromise the

results of the study. The following limitations have been identified:

The language: The questionnaire and interviews were drafted and

conducted in English and some participants had difficulties in expressing

themselves in English. This resulted in longer interviews than expected

and some participants leaving blank spaces in the survey questionnaire.

Data: Some participants, particularly union leaders, were unable to

express their individual views. They mostly responded in line with the

views of their organisations regarding the subject matter.

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Honouring scheduled interviews: The study aimed at interviewing at least

60 people but due to unavailability of potential participants only fifteen

were interviewed. Some participants wouldn’t honour their scheduled

interviews.

Researcher’s affiliation: Some participants were unwilling to participate

due to researcher’s affiliation to another trade union. The national office

bearers of other trade unions were unavailable to be interviewed by a

member of another trade union.

Usage of voice recorder: During interviews, a voice recorder was used for

record purposes. Some interviewees were uncomfortable and refused to

be voice-recorded in some instances.

Validity and reliability

3.7.1 External validity

Trochim and Donnelly (2007) as cited in Uys (2011) define external validity as the

extent to which research findings can be generalised. The research was strictly

focused on South Africa’s platinum mining industry. The sample was randomly

taken from three different mining companies and trade unions. However, to

ensure high external validity, the following were followed:

Thorough description of the research context was given

The researcher ensured a clear selection criteria for participants

All participant were randomly selected and willingly participated

Considering the nature and scope of the research, the findings cannot be

generalised to other industries and trade union formations. The views expressed

in this report only represent the views of the participants.

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3.7.2 Internal validity

Considering the nature of the research subject, participants had a potential to

express organisational views as opposed to individual views. To ensure credible

and believable results (Trochim & Donnelly, 2007), the researcher had to ensure

the following:

The anonymity and confidentiality of the participants were guaranteed

before they could participate in the study.

The objectives of the study and the role of the researcher were clearly

explained to all participants so as to build trust relationship

All perceptions and uncertainties were clarified to participants before

commencing with interviews.

3.7.3 Reliability

Trochim and Donnelly (2007) as cited in Uys (2011), describe reliability as the

process of ensuring that one would obtain the same results if one would make

the same observation twice. The study used qualitative research method hence

its reliability could be ensured by taking dependability into account. The data was

collected through interviews and surveys until it was saturated. All participants

willingly participated in the study. The chosen sampling method and selection

criteria ensured that participants had sufficient knowledge about 4IR and trade

unions.

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Demographic profile of respondents

The study targeted mine workers who are either affiliated to or knowledgeable

about trade unions. The population sample was characterised based on age,

gender, race, nationality, academic qualification, employment status and trade

union affiliation.

Age

Majority of participants were between the ages of 18 and 35. This was

expected considering the fact that mining companies recruit youngsters.

The results are represented in figure 3.

Figure 3: Age category of participants (%)

Gender

The mining industry is historically dominated by males. It was expected

that majority of participants would be males. The female participants

exceeded the targeted figure of 25 percent (25%). Figure 4 below shows

the participants’ percentage figures in terms of gender.

Figure 4: Gender of participants (%)

20

.3

32

.9

21

.2

12

.9

4.7

1 8 - 2 5 2 6 - 3 5 3 6 - 4 5 4 6 - 5 5 5 6 - 6 5

65%

35% Male

Female

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Race

The labour laws in the country force companies to recruit based on

employment equity. Even though race had no impact on the study, it was

important to consider sample from different races. Figure 5 below

represents racial demographics of the sample.

Figure 5: Race of participants

Nationality

Historically, the mining industry recruited cheap labourer from various

African countries. Most of the labourers had no formal education hence

4IR would have direct impact on them. Only 45% of the participants are

South African nationals.

Figure 6: Nationality of participants (%)

63%1%

15%

21% African

Indian

Coloured

White

44.7

18.8

7.1

17.6

2.45.9

3.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

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Academic Qualification

The participants’ academic qualification is crucial for the purposes of the

study. Theory suggest that the 4IR will require skilled employees. Only

20% of the sample had no matric qualification.

Figure 7: Academic Qualification of participants (%)

Employment status

Employment status was to ensure that participants fairly represents the

sample population.

Figure 8: Employer Representation (%)

20

37

.6

17

.6

15

.3

9.4

N O M A T R I C M A T R I C D I P L O M A D E G R E E P O S T G R A D

37

.6

43

.5

18

.8

A M P L A T S S I B A N Y E L O N M I N

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Trade union affiliation

For purposes of fairly representation it was important for all trade unions

in the industry to be accommodated. Focus was on NUM, UASA and

AMCU who are the big three trade unions in the sector. However, some

participants were either not affiliated or affiliated to different trade union.

Figure 9: Trade union representative (%)

38

.8

31

.8

17

.6

11

.8N U M A M C U U A S A O T H E R

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CHAPTER 4. PRESENTATION OF RESULTS

Introduction

This chapter deals with the presentation of results as obtained from participants.

The main objective of the study was to determine the impact of 4IR on the

sustainability of trade unions. The results focused on the trade unions’ inward

and outward analyses. The inward analysis component is used to assess the

state of readiness of trade unions for 4IR. On the other side, the outward analysis

is used to determine trade unions’ understanding of the concept of 4IR. All results

are presented based on themes related to each proposition.

Results pertaining to proposition 1

The first proposition of the study argues that for trade unions to survive the impact

of the fourth industrial revolution they will require massive investment in training

and development for their members. The findings are grouped into three themes

and four sub-themes. These findings are based on the participants’ observations

in their perspective workplaces. Table 4 represents the themes and sub-themes

as well as brief explanation of themes.

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Table 4: Themes pertaining to proposition 1

Theme Description of theme Explanation

1 Technological changes in the workplace To determine how much are companies transforming

towards technology. Participants noted the industries

desire to mechanise most operations.

2 Employer’s role in enforcing technological changes To assess whether employers have embraced

technological changes as the new way of doing business.

Participants are of the view that highly mechanised mines

weaken bargaining power of trade unions.

Sub-theme 2.1

Sub-theme 2.2

Sub-theme 2.3

Sub-theme 2.4

Cost reduction

Skills development

Women empowerment

Job losses

The participants are of the view that technology reduces

operating costs thereby increasing opportunities of

operational expansion. However, there’s a strong view

that employers tend to invest more on machine than on

people.

Majority of participants view skills development as a

necessity for future employment. Their biggest fear is the

behaviour of skilled employees towards trade unions.

Currently, skilled employees are reluctant to join trade

unions

Most respondents view technology as a catalyst towards

women empowerment. They argue that most women tend

to be reluctant to join trade unions. This is a serious threat

to sustainability of trade unions in the industry

Trade unions believe that technological changes bring

unemployment hence threatening existence of trade

union movement

3 Noticeable benefits of technological changes Participants agreed that technology has improved

production and safety of employees in the workplace.

Some participants are looking at ways of using

technology to their advantage.

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Theme 1: Technological changes in the workplace

From the responses of participants it was apparent that technological changes in

the workplace was extremely dominant. The participants claimed that there has

been a massive shift towards technology. Below are some of the views of

participants:

“Every platinum producer wants to mine safely and efficiently. Currently, mechanisation makes it

possible for the mining companies to achieve their vision of zero-harm and cost effective

production” NUM regional leader.

“Since the introduction of mechanisation, we have experienced a decline in workforce, companies

employ educated people from universities and are pushing those who have been here since

1990s to take VSP (Voluntary Separation Package) and never replace them. As trade unions we

are not happy about that” NUM national leader.

Theme 2: Employer’s role in enforcing technological changes

The role of employers in enforcing technological changes is viewed as weakening

trade unions. There was a wide range of factors that were identified as

contributing to weakening of trade unions. These factors were arranged into four

sub-themes.

Sub-theme 2.1: Cost reduction

Majority of the participants expressed their dissatisfaction with consequences of

cost reduction. Below are the quotations from three participants:

“Companies emphasises the importance of reducing operating costs but they hardly incentives

employees for their efforts. This makes us [trade unions] look weak and unable to fight for our

members” UASA Official.

AMCU Regional leader said “Our members used to work excessive hours to compensate for the

peanuts they get paid, now with this new cost reduction story they are not allowed to work overtime. This is

causing us problems, we fight everyday with our members”. Similarly, a Mine Manager

elaborated “The concept of cost reduction has caused tensions between unions and management.

Unions feel denied their hard-earned bonuses, in meetings one has to be careful in mentioning cost-

reduction as it might spark unnecessary argument”.

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Theme 2.2: Skills development

All participants agreed that the workforce needs to be developed. However, there

were different views as to who benefits from skilled workforce – trade unions or

mining companies? Nevertheless, skills development was viewed as a benefit for

individual worker/member. Below are some of the quotations from participants:

“Re-skilling is what we stand for, companies need to send our members for training so that they

can be employable. We all benefit from this” NUM National leader.

“Even though we would like to see our members trained, they mustn’t forget who fought for their

training. Sometimes people leave us after getting promoted” AMCU Steward

“Training and development is our priority, especially when there’s new machinery to be used. We

all benefit from skilled workforce” Mine Manager

Theme 2.3: Women empowerment

Technology in the industry is viewed as improving women empowerment. This is

phenomenon trade unions are proud of even though some believe that this poses

serious challenges.

NUM Regional leader said “machines have balanced workload in the industry hence we see

significant improvement in women entering the industry. We are happy about that, it’s what we

struggled for even though majority of them [women] chased us away in 2012”

AMCU Regional leader said “With these machines, there’s no more job for man only. We all do

the same job. We like seeing women in the industry even though most of them do not care about

unions. They just want to work and go home”

Theme 2.4: Job losses

Technological changes have led to job losses. Job losses give participants

sleepless nights as they tend to lead to community unrest. All participants were

concerned about job losses due to mechanisation in the industry.

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“I am yet to see mechanisation that doesn’t lead to job losses. In every mine where there has

been mechanisations, there’s always retrenchment and this is bad for us” NUM Regional leader.

Theme 3: Benefits of technological changes

All participants agreed that introduction of technology has brought some much

needed benefits in the mining industry. They, however, indicated the threats

brought by these benefits to trade union movement.

NUM National leader, for example, noted “Since the introduction of new mining technologies, we

have noticed a decline in number of fatalities as compared to Gold sector”. The participant

elaborated further on the matter “Improved working conditions means irrelevance of trade

unions in that aspect. Remember, our recruitment strategy has always been around working

conditions and better wages”

Echoing the same sentiments as the first participant, another participant had the

following to say “Unlike before, there’s more literate employees and much improved working

conditions. People can decide for themselves now…they no longer need unions to tell them what

to do” Mine Official.

Results pertaining to Proposition 2

The second proposition of the study was about the kind of leadership needed in

the future. It argued that the fourth industrial revolution poses serious challenge

to the future existence of trade unions and therefore trade unions will need

visionary leaders to survive. Likewise, the findings are grouped into different

themes and sub-themes based on participants’ responses. Table 5 represents

the themes.

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Table 5: themes pertaining to second proposition

Theme Description of theme Brief explanation

1 Trade Unions’ view on 4IR The participants view 4IR as a challenge to trade unions.

2

Sub-theme 2.1

Sub-theme 2.2

The future of trade unions

Specialisation

Weakened collective bargaining

Majority of participants are optimistic about the future of trade

unions

The most popular view is that future trade union members will

be very sophisticated and will require different approach.

The majority of participants are concerned about the possibility

of weaker collective bargaining

3

Sub-theme 3.1

Sub-theme 3.2

Future levels of unionism in the sector

Increase in membership

Decrease in membership

There are two very strong views about the subject. Participants

are divided between the two sub-theme

A significant number of participants believe that there’ll be

increase in trade union numbers

Even though not in majority, a sizeable number of participants

are not so optimistic about the future members. They,

Theme 1: Trade union’s view on 4IR

The participants showed sufficient knowledge about 4IR. They believe that the

4IR brings new challenges for trade unions. There’s a strong view that trade

unions should transform to accommodate modern day challenges.

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For example, NUM Regional leader stated “The mechanisation caught us off guard around

year 2002, we can’t say we don’t know how to deal with technological changes now. Otherwise

we may as well close shop and leave”. This sentiment was echoed by another

participant who said “Technology is here, all we have to do is to adapt and transform” UASA

Official

Theme 2: Future of trade unions

Majority of participants expressed little optimism about the future of trade unions.

From their expression there are two sub-themes that emanated

Sub-theme 2.1: Specialisation

Participants emphasised the amount of specialisation brought by technological

changes. They believe that trade unions need to undergo structural changes to

remain relevant. NUM National leader noted “Since the introduction of machines, companies

have attracted skilled employees. This had negative impact on our membership figures”.

Another participant shared a similar view

“These machines are operated by educated people who earn lot of money. They don’t care about

unions…to attract them we must stop electing leaders who are noise makers, education level

must be considered before electing leaders” AMCU Steward

Sub-theme 2.2: Weakened collective bargaining

Participant showed great concern about possibility of trade unions losing their

bargaining power. Below are some of the views from participants:

Mine Manager said “Nowadays, unions can’t just go on strike. Their members understand the

impact of being on strike…this has weakened their bargaining power”

“Before these machines companies were scared of us [trade unions] now they don’t care because

machines can produce more than people” AMCU Official.

“Introduction of technology has killed our militancy, when there’s no militancy it’s difficult to

bargain as a team. Each union stands for itself, no more collectivism and togetherness” NUM

Regional leader

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Theme 3: future levels of unionism

There are two very strong views about the subject. Participants are divided

between the two sub-themes

Sub-theme 3.1: Increase in membership

Based on participants’ responses, about 53% of participants believe that despite

introduction of technology in the industry, trade union members will continue to

grow but they acknowledge that there has to be some structural changes in trade

union movement. Below are some of the views:

“I’ll talk about our union, majority of our members are youth and they continue to join us. We have

better benefits that entice them to join hence I believe our membership will continue to grow”

NUM National leader

“Trade union membership can only increase if they start electing people who are knowledgeable

about running business. They can’t achieve anything if they continue electing people who resolve

everything through strikes and intimidation” Mine Manager

“Increase of membership is a guarantee, as long managers continue to victimise us” AMCU

Regional leader.

“our scope of organising cut across three sectors, technological changes in one sector will not

have meaningful impact on our membership hence I believe it can only increase” NUM Regional

leader

Sub-theme 3.2: Decrease in membership

A noticeable percentage of participants believed that trade union membership will

definitely decline in the future. They based their argument based on many factors

including age, gender, skills, leadership etc.

“The current leaders think being a leader is a career…they don’t educate themselves hence some

people are reluctant to join unions. I don’t see unions increasing their members, it’ll continue to

drop” UASA Official

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“Truth be told, there’s lots of non-unionised employees. People no longer see the need to join

unions when there’s low risk of being victimised by employers. Skilled employees hardly utilise

union services hence they don’t see value in joining. With these technological improvements,

things can only get worse” NUM Regional leader

Summary of the results

This chapter focuses on the findings of the study with regard to the two study

propositions. The first proposition states that for trade unions to survive the

impact of the fourth industrial revolution they will require massive investment on

training and development of their members. Based on the responses of the

participants, themes related to the proposition were identified for ease of analysis.

In relation to the first proposition, at least seven themes were identified.

The second proposition states that the fourth industrial revolution poses serious

challenge to the future existence of trade unions and therefore trade unions will

need visionary leaders to survive. For this proposition, three themes and four sub-

themes were identified. The researcher believes that the themes identified for

each proposition are sufficient for one to make informed conclusion.

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CHAPTER 5. DISCUSSION OF THE RESULTS

Introduction

The objective of this chapter is to discuss the findings of the study. Qualitative

data was collected through in-depth interview method. For ease of analysis, the

data was transcribed and coded to give it specific themes related to the

propositions. Each identified theme will the discussed separate in this chapter.

The discussion will start with the first proposition and all the seven themes

pertaining to it. Afterwards, the second proposition and its themes will follow in

the discussion. The demographic profile of the participants has already been

discussed in chapter 3 therefore it will not be discussed again in this chapter.

Discussion pertaining to Proposition 1

The first proposition of the study argued that for trade unions to survive the impact

of the fourth industrial revolution they will require massive investment in training

and development for their members. To conclude on the accuracy of the

proposition, seven identified themes are analysed in relation to perception of the

participants and literature review. These themes are discussed below:

5.2.1 Technological changes in the workplace

This theme was aimed at determining how much are mining companies

transforming towards technology. From the responses of the participants it

became clear that mining companies are already transforming towards

mechanised mining. Participants acknowledged that technological changes have

brought some serious challenges for trade unions. From literature review it was

noted that mechanisation of mines leads to safe and cost-effective operation. This

collaborates with the views of participants. Participants also noted that

technology has led to an increase in specialised jobs that are out-sourced to

contractors who employ fewer employees.

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53

This threatens the existence of trade unions as it is difficult to recruit people who

are only employed for a short period to perform a specific task.

5.2.2 Employer’s role in enforcing technological changes

This theme was aimed at assessing whether employers have embraced

technological changes as the new way of doing business. The study revealed

that employers indeed play a role in enforcing technological changes. Their role

is perceived to be instrumental in weakening trade unions’ bargaining power.

High levels of mechanisation results in manifestation of factors that have potential

to weakening trade unions in the industry. These factors were identified as cost

reduction, skills development, women empowerment and job losses.

Cost reduction

The employers’ desire to reduce operating costs in a threat to the

existence of trade unions. Cost reduction means replacing physical labour

with machines to execute tasks much safer and faster. The literature

revealed that the 4IR will results in job losses (Schwab, 2016 & Naude

2017).

Skills development

Training and skills development are a necessity for the survival of

organisations under the era of 4IR. The study reveals that participants

valued the importance of skills development. They noted its relevance in

the era of 4IR and how important it is for future employability of trade union

members. Interestingly, all participants believe that the employers should

carry the burden of training and development. The trade unions’ attitude

to give training responsibility to employers might be dangerous to their

future existence. Hlatshwayo (2014), alluded that trade unions’ reluctance

to train and develop their members is a reason they become reactionary

when new technologies are introduced.

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Women empowerment

Technological changes have improved women employment in the

industry. Trade unions have made significant structural changes to

accommodate needs of their female members.

The NUM, for example, amended its constitution to include a women

structure from branch level until national level. This is a positive move

which has made NUM more attractive to female employees. However,

there is high level of uncertainty amongst female employees joining trade

unions. Most of them have not yet conceptualised the importance of

belonging to a trade union. This is one shortcoming that trade unions need

to address before it’s too late.

Job losses

As envisaged by most scholar in the literature review, technological

changes have led to massive job losses in the industry. This was also

acknowledged by the participants. Unfortunately, trade unions have no

solutions to job losses as employers are protected by labour relations act

(LRA). The LRA empowers employers to dismiss employees for

operational reasons provided there is compliance with section 189 of LRA.

The platinum industry experienced twelve percent (12%) declined in

employment between year 2012 and year 2016 (Chamber’s report, 2016).

5.2.3 Noticeable benefits of technological changes

Technological changes have brought more improved working conditions with

more literate personnel. There has been a massive drop in terms of mine injuries.

The number of fatalities was reduced by 55% between year 2010 and year 2014.

Hattingh et al (2010), stated that technology seeks to improve safety and working

conditions in the mining industry.

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5.2.4 Conclusion regarding proposition 1

The results concur with the first proposition. It is evident that trade union

existence will be challenged by the emergence of 4IR hence they need to embark

on training and development of their members. Unfortunately, evidence from the

interviews indicates that trade unions are not yet taking full responsibility for

training and development of their members. They believe that the employers

should carry the burden of training and development.

Discussion pertaining to Proposition 2

The second proposition argues that the fourth industrial revolution poses serious

challenge to the future existence of trade unions and therefore trade unions will

need visionary leaders to survive. All themes pertaining to the proposition are

discussed separately.

5.3.1 Trade Unions’ view on 4IR

The findings reveal that trade unions are very much aware of the impact of 4IR

on trade unions’ sustainability and existence. They believe that mechanisation is

the future of mining industry of which for them to survive they need to adapt. This

view resonates with Ramlall (2003), assertion that technology changes the

manner organisations are conducted. What is lacking though, from trade union

perspective, is a clear strategy on how they are going to adapt. Trade unions

have to transform towards meeting demands of the new labour market. All

participants agreed that the labour market has changed and needs trade unions

that are adaptive and flexible. If trade unions fail to adapt, they will not survive in

the future.

5.3.2 Future of trade unions

From the findings of the study, the future of trade unions is not promising. There

are two factors that were highlighted as threat to the future existence of trade

unions, specialisation and collective bargaining.

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Specialisation

Technology has led to specialisation of jobs which results in employment

of skilled employees. This resonates with Hodgson (2016), assertion that

innovative technology will change the character of work and the patterns

of employment across industries. Specialised jobs result in reduced

workforce numbers and give employees a sense of job security. Trade

unions are aware that job security reduces chances of employees joining

trade unions hence they might find it difficult to survive in the future.

Collective bargaining

Technology has weakened the bargaining power of trade unions. Skilled

employees are able to individually bargain for their employment contract.

This takes away the trade unions authority to bargain for the collective

workforce. Participant alluded to the fact that most employees are more

concerned about their careers and have no regard for struggles of other

fellow workers. This is weakening the bargaining power of trade unions.

5.3.3 Future levels of unionism

There were two contrasting views about the future levels of unionism in the

industry. It is difficult to conclude on the participants views regarding the matter.

One segment of the participants believed that trade union membership is bound

to increase while another believed that it can only decrease. The segment that

advocated for increase in membership cited leadership maturity, employer

hostility towards employees, quality service to members and trade union benefits

as some of the reasons for their argument. The employment of young skilled

workers and specialisation of jobs were highlighted as some of the reasons why

trade union membership will decrease. The reduction of workforce by close to

26 000 workers between years 2012 and 2016 (Chamber of Mines’ report, 2017),

makes it more likely to conclude on possible reduction in future trade union

membership.

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5.3.4 Conclusion regarding proposition 2

The findings of the study suggest that trade unions are aware of the need to adapt

to technological changes. They highlight the trade unions’ analysis on their future.

However, there is no concrete evidence that suggest that there is a need,

specifically, for visionary leadership. It therefore cannot be concluded that

visionary leadership is needed for future survival of trade unions.

Conclusion

This chapter dealt with the discussion of the research findings that were

presented in chapter 4. The findings were discussed according to different

themes related to each study proposition. Proposition 1, claimed that for trade

unions to survive the impact of the fourth industrial revolution they will require

massive investment in training and development for their members. With regard

to this proposition, seven themes were identified and discussed. All these themes

were discussed in conjunction with the literature review with the aim of finding

either similarities or differences with previous studies. The discussion of the

seven themes led to conclusion that corresponds with the first proposition. The

results concur with the first proposition. It is evident that trade union existence will

be challenged by the emergence of 4IR hence they need to embark on training

and development of their members. Therefore, proposition 1 was proven to be

valid.

The second proposition was tested through discussion of three major themes that

were identified. Again, the study findings were compared to the literature to

determine if there are any similarities or differences. Unfortunately, the findings

of the study were not sufficient to support the second proposition. It, therefore,

cannot be concluded that visionary leadership is needed for future survival of

trade unions. Therefore proposition 2 is not accepted.

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CHAPTER 6. CONCLUSIONS & RECOMMENDATIONS

Introduction

This chapter aims at providing conclusion and recommendations based on the

findings of the study. The conclusion will determine whether the research problem

and sub-problems have been clear addressed. The study will make

recommendations for future research based on the study’s findings and

shortcomings.

Conclusions of the study

The study argued that 4IR impacts on jobs thereby threatening the sustainability

and existence of trade unions. The trade union’s response to 4IR will determine

their future existence. The study revealed that training and development will play

a major role in ensuring trade union sustainability. However, trade union leaders

have not yet derived mechanism to train and develop their members for the

imminent 4IR. This failure might threaten trade union’s future existence and

sustainability as stated by Hlatshwayo (2014), that TUs’ failure to acknowledge

technological changes as a subject that requires research, education and

organisational capacities is posing serious challenges to their future existence

and sustainability. At any workplace where trade unions exist they should build

training facilities to train their members for future skills. They can form partnership

with employers to minimise the cost effect and guarantee future employment of

the trained members.

In future, trade unions will not be attractive to employees. Trade union leaders

need to transform their organisation to be adaptive to the new era of technological

changes. Trade union leaders can no longer afford to continue acting on behalf

of members as collective.

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Each member has different needs and trade unions should strive to meet such

needs to convince members that they are advocating for their interests.

Trade union leaders should appeal to all categories of their members. The

youthful skilled members should also feel represented by their trade unions.

Trade union leaders have to address the perception that they are no longer

relevant especial amongst young and female members.

Trade union need to improve their services and benefits to members. Members

will no longer join trade unions for protection in the workplace. They’ll need some

social development and personal development opportunities. Trade unions

should consider adopting social-movement unionism as explained by Hyman

(2001). The quality of service delivered can be improved through membership

benefits such as bursaries for members and their dependants, providing day care

services for all female members, providing free training on financial services and

pension funds, free funeral covers and developing applications for ease of

communication.

In the platinum mining industry employers are already implementing

technological changes. These changes have led to massive job losses which

caught trade unions off guard. Trade unions should persuade employers to fund

community development programmes that will be aimed at developing

community members for future employment in the mines. Trade unions should

play a major role in creation of decent and permanent jobs for the surrounding

communities. This will ensure that they remain relevant especially amongst the

young and female employees.

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Recommendations

There is need for trade unions to work together with employers to prepare their

members for highly technological workplace. Technology reduces operating cost

and ensures safe production hence it is beneficial to all stakeholders.

Trade union leaders should embark on roadshows to increase awareness of 4IR

and its impact on jobs and members. The awareness will educate members on

how to adapt and respond to the challenges of 4IR. The leaders and their

education desks should ensure that members participate in these roadshows.

Both the employers and trade unions should start researching on mechanisms

that can be put in place to avoid job losses due to innovative technologies.

Through NEDLAC, trade unions and employers should advocate for government

subsidy in training and development for future jobs. This subsidy should be

specific for specialised skills that will be needed in the future. The employers

should also go beyond complying with skills development legislature and assist

in identifying specialised skills that require training and development.

Suggestions for further research

The participants in the study were mainly people who are in leadership positions.

Perhaps the findings of the study might be different if the sample could be

extended to ordinary members of trade union and mine employees.

The scope of the research was only limited to the platinum mining industry. It is

suggested that for future studies the scope could be extended to the broader

mining industry or other industries such as manufacturing, services, agriculture

etc.

The trade unions should also conduct their own study on the impact of fourth

industrial revolution. This will assist them to make empirical argument from an

informed point of view. Again, they’ll better equip themselves to deal with the

consequences of 4IR.

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